New York Markets After Hours

Dana net up 24% on lower costs, core earnings fall

SaabiraChaudhuri

Dana Holding Corp.'s
DAN, +0.76%
fourth-quarter profit rose 24% as the auto-parts company saw a slump in sales offset by lower input costs, while its bottom line benefited from certain one-time items.

The maker of axles and engine coolers had generally seen its earnings grow as the auto industry has bounced back from the recession. The company had also benefited from gearing its products toward fuel-efficient and lower-emission vehicles, and has been expanding in emerging markets. However lately Dana has grappled with weakness in North America, South America and Europe and last year the company cautioned that it expects reductions in commercial vehicle production in North America as well as softening construction demand in Europe.

Chief Executive Roger J. Wood said Thursday he was "pleased with Dana's performance for 2012, despite end-market volatility in almost every region of the world."

Dana reported a profit of $88 million, or 41 cents a share, compared with a year-earlier profit of $71 million, or 33 cents a share. Nonrecurring items contributed $50 million to income, versus $18 million a year earlier. Stripping out one-time items, the company reported a per-share profit of 38 cents versus 42 cents.

Light-drive vehicle sales, the largest contributor to the top line, fell 8.5% to $622 million. Commercial vehicle sales fell 26% to $425 million.

Dana noted the impact of currency lowered sales by $322 million compared with last year. Excluding currency, Dana sales increased in most of its segments although this growth was offset by a decline in commercial vehicle sales of $169 million, reflecting what the company said was weak end-market demand.

Gross margin widened to 12.2% from 11.3% as input costs dropped 16%.

During the quarter, the company repurchased 1.07 million shares at a cost of about $15 million.

Shares closed at $16.62 on Wednesday and were inactive in recent premarket trading. The stock has risen 21% in the past three months.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.